Public and Employer's Liability Insurance: Impact of Limitation Decision

In a recent decision, which received widespread media attention, the House of Lords changed the law on the time limits within which a claimant can bring a claim for deliberately inflicted personal injury, including sexual assault.

The primary time limit within which a claim for personal injury can be brought is either three years from the date of injury caused by negligence, nuisance or breach of duty or three years from the date of knowledge (if later) of the person injured. Knowledge means knowledge: (a) that the injury was significant; (b) that it was caused by the acts of the defendant; and (c) of the identity of the defendant (or any third party who caused the injury that permits the claim against the defendant). The court also has a discretion to extend this period.

Prior to the recent House of Lords decision, the above time limits did not apply to injury caused by deliberate assault (as opposed to negligent breaches of duty). In cases of deliberate assault the claimant had to bring a claim within six years of the injury caused by the assault. The claimant could not rely on a time limit that ran from the date on which he had the required knowledge. Nor did the court have a discretion to extend this time period.

But in A v Hoare & Others, the House of Lords decided

a victim of a deliberate assault does in fact have three years from the injury caused by the assault or from the date of knowledge (if later) to bring a claim;

the court has a discretion to extend this period;

whether or not a claimant "knows" he has a significant injury for the purposes of starting the time limit is essentially objective. It depends on (a) what he actually knows about his injury; (b) what he might reasonably be expected to know in the circumstances; and (c) whether a reasonable person would in those circumstances reasonably (and objectively) have considered it sufficient to allow him to bring a claim; and

that the court will consider whether the actual claimant could reasonably have been expected to commence proceedings when deciding whether or not to exercise the discretion to extend the time limits.

So does this decision increase insurers' exposure, as has been reported?

Potential claimants will now have three years from date of knowledge to bring claims, rather than six years from the date of injury. Further, claimants will be able to ask the court to exercise its discretion to extend the time limits. [At least one of their Lordships expect that "a...